France to propose world business tax at G7: minister

DAVOS, Switzerland: French Finance Minister Bruno Le Maire said on Thursday that France would plead for global minimum corporate tax as a priority of its presidencyof the G7 nations group this year.

“We need an effective minium corporate tax in all developed countries,” the minister said at a press conference on the sidelines of the World Economic Forum in Davoswhere he defended the idea of a “fairer” capitalism and globalisation. The ambitious proposal has long been a desire of activists, but could raise eyebrows among the Davos elite with many countries seeking to drive down tax rates to attract big business. “We know that some of the biggest companies are escaping taxes and corporate taxes through many possibilities,” he said, targeting in particular countries that do not tax multinationals at all. According to a recent OECD report, average corporate tax rates around the world fell further last year to 21.7 percent. But countries with rates of less than 10 percent were 13 in 2018 compared to 10 in 2000, the OECD said, The OECD pointed out that twelve jurisdictions with zero rates, including the British territories of Guernsey, Jersey, as well as the Isle of Man and the British Virgin Islands. “Some tax competition is not bad and forces countries to be more competitive, but zero tax jurisdictions are not acceptable,” Le Maire said. “That’s why the first priority for the finance part of the G7 will be the introduction of an effective minimum corporate tax to fight against tax avoidance from the biggest companies of the world.”